ACDI/VOCA Standards Development in Post-Soviet Countries: Honoring the Past, Building the Future Presentation for American National Standards Institute (ANSI) Annual Meeting Washington, DC 2002

Promoting Enhanced Access to Voluntary Standards Primary Client: U.S. Agency for International Development (USAID)Primary Client: U.S. Agency for International Development (USAID) Focus: product and process standards in domestic and export marketsFocus: product and process standards in domestic and export markets Desired Impact: economic growth and efficiencyDesired Impact: economic growth and efficiency - small- and medium-enterprise competitiveness - trade facilitation and export promotion - financial markets development Economic Sectors:Economic Sectors: - agriculture - food - banking - accounting

General Project Characteristics Demand-driven, participatory, and market-driven Demand-driven, participatory, and market-driven - public officials and government agencies - private industry stakeholders Standards development as one component of larger program Standards development as one component of larger program Focus on interventions at transactional level Focus on interventions at transactional level - intermediary organizations and private firms Primary tools: expatriate, regional and local consultants and volunteers for technical advisory services and training; study tours; sub-grants Primary tools: expatriate, regional and local consultants and volunteers for technical advisory services and training; study tours; sub-grants

Barriers to Trade: Financial Markets Few chartered accountants in IAS/auditors in ISA Few chartered accountants in IAS/auditors in ISA Conflict between Tax Codes and IAS Conflict between Tax Codes and IAS Conflict between nation-building and IAS Conflict between nation-building and IAS Gradualist/phased enterprise conversion to IAS Gradualist/phased enterprise conversion to IAS Bankers unable to lend (even when a firm is a good credit risk) because of the violation of underwriting standards Bankers unable to lend (even when a firm is a good credit risk) because of the violation of underwriting standards

Barriers to Trade: Agriculture and Food Inadequate food safety management programs Inadequate food safety management programs Inability to meet national, European Union or international requirements in priority sectors Inability to meet national, European Union or international requirements in priority sectors Absence of an organized and cooperative approach between government and industry to develop a plan for a nation-wide HACCP program Absence of an organized and cooperative approach between government and industry to develop a plan for a nation-wide HACCP program

Changing Roles to Remove Barriers Government Prioritize industry sectors for which standards development is most important Prioritize industry sectors for which standards development is most important Establish standards implementation committees Establish standards implementation committees Incorporate standards into systems of inspection Incorporate standards into systems of inspection Industry Associations/Consulting Firms Produce industry guides Produce industry guides Lobby government on benefits Lobby government on benefits Provide information related to implementing standards Provide information related to implementing standards Collect data on products, hazards and risks Collect data on products, hazards and risks Provide generic international standards plans Provide generic international standards plans Conduct training for members Conduct training for membersFirms Implement standards Implement standards

ACDI/VOCA’s Performance Targets: Small- and Medium-Sized Enterprise Competitiveness Trade and Export Promotion Income Generation Job Creation Enhanced Product Quality and Safety

Sub-sector Focus (Bulgaria) HACCP and GMPs HACCP and GMPs - Veterinary Pharmaceuticals - Bakery and Confectionary - Dairy Sector (cheese processing) - Meat Processing - Fruit & Vegetable Processing

Intervention Process Firm-level tasks (HACCP): - Review government regulations - Educate management to benefits and costs - Establish prerequisites for implementation of HACCP - Provide operational manuals - Inspect plant - Identify Critical Control Points (CCPs) - Review adverse findings - Prioritize deficiencies - Draft Action Plan - Implement Plan

Illustrative Recommendations: Cheese Processing Yotovi Ltd Dairy, Bulgaria Put lids on all vats Put lids on all vats Provide good sanitary practices training to employees Provide good sanitary practices training to employees Conduct periodic plant self-inspections Conduct periodic plant self-inspections Engage services of professional pest control firm Engage services of professional pest control firm Keep finished product on “Hold” until a written release is issued by Quality Control Keep finished product on “Hold” until a written release is issued by Quality Control Calibrate all plant thermometers against a standard and keep a record of all calibrations; do not use glass Calibrate all plant thermometers against a standard and keep a record of all calibrations; do not use glass

Illustrative Results Veterinary Pharmaceuticals PrimaVet Ltd, Bulgaria Introduced new products Introduced new products Increased sales Increased sales Added 4 new employees Added 4 new employees Expanded exports into 2 new markets Expanded exports into 2 new markets Increased beekeeper clients to 80% of Bulgarian beekeepers Increased beekeeper clients to 80% of Bulgarian beekeepers Finalized blueprints for new plant based upon design consistent with GMP and efficient operating conditions Finalized blueprints for new plant based upon design consistent with GMP and efficient operating conditions

Key Success Factors Customer and business demand Customer and business demand Strong host government commitment Strong host government commitment Pro-active and innovative firm-level leadership Pro-active and innovative firm-level leadership High potential impact from standards implementation High potential impact from standards implementation Adequate infrastructure and facilities Adequate infrastructure and facilities Financial resources Financial resources

ACDI/VOCA….Setting Standards Globally KyrgyzstanLithuania MacedoniaMoldova MongoliaPoland RomaniaRussia TurkeyUganda UkraineYugoslavia

“Man built most nobly when limitations were at their greatest.” Frank Lloyd Wright